Chinese cargo airlines suffer from a different kind of problem to their European counterparts

The latest monthly record of the airlines has shown that European airlines has been making an effort to protect the load factor of cargo because of drop in volume while Chinese airlines have the same problem as a result of additional capacity.

Four major cargo carriers of China revealed demand rises during July of last year while China Eastern showed a drop in volumes. Four airlines gave 11.3 percent year on year hike in demand through the month. Yet, this was not ample to keep the load factors as all the airlines show the rise in capacity ahead of demand growth.

Air China registered the highest rise; airline showed the 27.1 percent rise in traffic during July of last year to 581m revenue freight ton-km. This hike is not just decreasing in additional traffic, as in weight, it showed in the July rise of 14.5 percent, proposing that cargo is being hovered long distances with the addition of special services.

This tonnage growth is still more than growth in Asian markets. But this hike in demand was not sufficient to surpass the 28.2 percent year on year increase in supply to 924m available freight ton-km (AFTK).

The rapidly growing airline has extended its fleet over recent months. In September 2014, it delivered a double figure percentage rise in available freight capacity and then its fleet aircrafts have increased from 518 to 566. As a result supply, demand overtakes in July and its load factor drop by 0.6 percent to 57.5 percent. China Eastern showed the major drop in load factor during this month.

It showed a 9.4 percent year on year decrease during the July as demand decline by 11.1 percent to 372m revenue freight ton-km (RFTK) and 5.1 percent to 724m AFTK capacity rise.

In the meantime, Cathay Pacific the world’s leading air cargo recorded a 1.4 percent year on year hike in airfreight volumes in July to 877,066 cargo and mail revenue ton-km (CMRTK).

During the month the capacity raised by 6.2 percent to 1.4m available cargo and mail ton-km (ACMTK) as a result its load factor drop to 61.8 percent from 64.7 percent during the month of July of last year. According to the airline, the demand of the month had been beneath the hopes.

Finally, China Southern showed a year on year rise of 8 percent in demand but its load factor also drop due to 12.5 percent rise in capacity. In general, air cargo growth has moderated across the world as the year has developed.  IATA said that the slowdown has been more in Europe as compared to Asia.